Liquidity

E19: Top 5 VC funds raise big $, venture capital DPI is back, and Sequoia’s offer to LP’s

Jul 18, 2024

Experts Jamie Rhode, Matthew Mulvey, and Jason Calacanis discuss DPI in Silicon Valley, Unicorn founder demographics, LP trends, Sequoia's liquidity strategy, impact of M&A deals, and challenges for emerging managers in VC.

55:45

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Episode guests

Jason Calacanis

Matthew Mulvey

Jamie Rhode

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Sequoia's unique share buyback program boosts AI company returns to LPs.

Underdog founders, including immigrants and women, show success in creating unicorns.

Emerging managers face challenges as first-time venture fund raisings decline.

Deep dives

High DPI Returns Reported by Silicon Valley Firms

Firms in Silicon Valley are celebrating high Distributed Paid in (DPI) capital returns to Limited Partners (LPs) due to recent acquisitions and creative capital distribution strategies. Sequoia reported significant returns from AI company acquisitions and a unique share buyback program.

Intro

2min

Innovative Capital Distribution Strategies and Successful Investments in Venture Capital

3min

Exploring the Significance of Consistent Vintage Year Exposure in Venture Capital Investing

2min

Venture Capital Fund Strategies and Industry Dynamics

17min

Embracing Underdogs and Diversity in Venture Capital

8min

Concentration of Investments in Top VC Funds and Challenges for Emerging Managers

19min

Exploring Investor Relations and Innovative Fundraising Strategies for Small Funds

2min

Impact of AI on Venture Capital Portfolios

4min

Todays show:

David Weisburd hosts Jamie Rhode, Matthew Mulvey, and Jason Calacanis to discuss DPI coming to Silicon Valley (00:45), demographic data on the backgrounds of Unicorn founders (23:08),and trends for limited partners (30:54), and more!

Timestamps:

(0:00) David Weisburd intros Jamie Rhode, Matthew Mulvey, and Jason Calacanis (2:11) DPI, recent acquisitions, and economic impacts on distributions (4:18) Consistent vintage exposure and proactive DPI management strategies (10:46) Sequoia's liquidity approach and LP needs in venture capital (15:02) The role of emerging managers and secondary markets in VC (20:23) The impact of M&A deals and the importance of partnership selection for founders (23:08) Unicorn founder demographics and underdog success (30:54) LP preferences, the challenges for emerging managers, and democratizing venture investments (45:37) The decline of first-time funds, motivations for fund creation, and innovations in fundraising (52:19) Venture portfolio management with AI and technology adoption parallels

Mentioned on the show:

https://www.axios.com/2024/07/15/sequoia-capital-stripe

https://techcrunch.com/2024/03/27/unicorn-founders

https://x.com/Samirkaji/status/1801351637895942243?utm_campaign=OpenLP+newsletter&utm_medium=email&_hsenc=p2ANqtz-8j6WSVjgGUZXegAo58QYJgSmqd90ozahWmHQWU0Qsnyk_KaXsIldVB7mrcruCafZe_JukeEs-r0fC78VCzJ0kOU7Ppog&_hsmi=313664446&utm_content=313664446&utm_source=hs_email&mx=2

Follow Jamie:

LinkedIn: https://www.linkedin.com/in/jerrcfa

Check out: https://www.screendoor.co

Follow Matthew:

LinkedIn: https://www.linkedin.com/in/mattmulvey

Check out: https://www.liquid2.vc

Follow David:

X: ⁠⁠https://twitter.com/DWeisburd⁠⁠